New balancing model in Norway, Sweden and East Denmark

The TSOs of Denmark, Norway and Sweden agree on a model for future balancing of the Scandinavian power system. An important first step towards the realization of the model, the proposal for the determination of LFC blocks, will now enter a phase of public consultation. Stakeholders are invited to give their input.

- Changes in power demand, more intermittent generation and an increase in interconnection with other systems require new solutions. We are therefore very pleased to be able to present a joint solution we believe to be adequate and sustainable with regard to challenges ahead for the power system. Furthermore, the model allows for common European markets for reserves. We are now looking forward to receiving concrete input from the stakeholders says Niclas Damsgaard, Søren Dupont Kristensen and Øivind Rue of the three TSOs in a joint statement.

In the new Scandinavian balancing model, each TSO will be responsible for the balance within its own area, while Svenska kraftnät and Statnett will maintain the current coordinating role for operation of the power system. The Scandinavian TSOs have good experience with the use of bidding zones in the energy market following structural congestions. We will expand the use of these to the balancing area. This will give the system operators improved control which is deemed a necessity in the future power system based on renewable energy and further integration with the rest of Europe.

Statnett, Svenska kraftnät and Energinet have signed a cooperation agreement covering principles for balancing within the Scandinavian area. The cooperation agreement also stipulates roles in the balancing process and the use of the Swedish-Norwegian IT-company 'Fifty' for the development of common IT-solutions as well as the balancing model itself. The new cooperation agreement will enable the development of the balancing markets in the pace required by changes in the power system as well as successfully implementing new European legislation. It will also contribute to facilitating more renewable production, and as such be pertinent for a successful energy transition.

Finnish TSO Fingrid has decided not to join the cooperation.

-We regret that Fingrid has decided not to join the new cooperation towards the new balancing model. However, we are still looking forward to a fruitful cooperation with Fingrid and emphasize that the Scandinavian TSOs aim for collaboration, not isolation, says the three representatives of the TSOs.

Next step in the development of the new balancing model is the determination of LFC blocks for the Nordic Synchronous area as required under EU's Guideline on System Operations. Each TSO is responsible for submitting proposals to their regulator within 14th of January 2018.